One Potential Weakness of the Coordination Failure Model as an Explanation

question 2

Multiple Choice

One potential weakness of the coordination failure model as an explanation of business cycles is that

• A) evidence supporting intertemporal substitution as an important determinant of labor supply is weak.
• B) evidence supporting the existence of increasing returns at the aggregate level is weak.
• C) it fails to explain several of the key business cycle regularities.
• D) it requires that consumers not behave in a rational manner.

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Definitions:

Neutrons

Neutral particles found in the nucleus of an atom, with no electric charge.

Protons

Positively charged subatomic particles found within the nucleus of an atom, defining the element's atomic number.

National Origin

The country or geographic area where a person was born or where their ancestors come from, often a factor considered in discussions about diversity and discrimination.

Sexual Preferences

An individual's patterns of attraction to others, based on physical, emotional, or other characteristics.